POLYTEC HOLDING AG: Results 1st half-year 2018

Hörsching (pta010/08.08.2018/07:35 UTC+2) .
* Group sales fell by 5.6% to EUR 328.7 million
* EBIT margin declined from 9.0% to 7.0%
* Group earnings after tax reached EUR 16.6 million, H1 2017: EUR 22.6 million
* Corresponded with earnings per share EUR 0.74, H1 2017: EUR 1.01
* Equity ratio was 1.4 percentage points up at 43.5%, as compared to 31.12.2017

As compared to the excellent result of the preceding year, in the first six months of 2018 POLYTEC GROUP sales fell by 5.6% to EUR 328.7 million (H1 2017: EUR 348.3 million).

As was already the case in the first quarter, during the second quarter of the current year the number of call-ups for diesel vehicle products declined noticeably. In particular, this was a result of the bans on older diesel models, which led to customer uncertainty. Considerably lower tooling and engineering sales also had an impact. The very high level of passenger car market sales of the previous year, as well as sales in the non-automotive market area, was not repeated in the half-year under report. But conversely the commercial vehicles market area developed in a positive manner and showed a slight rise in comparison with the preceding year.

As compared to the same period of the previous year, sales in the passenger car market area, which with 63.7% (H1 2017: 65.4%) represents the strongest sales area within the POLYTEC GROUP, were down by 8.0% at EUR 209.4 million (H1 2017: EUR 227.6 million). Sales in the commercial vehicles market area (26.7%, H1 2017: 24.4%) during the period from January to June 2018 were slightly higher than in the same period of 2017, increasing by 3.4% from EUR 85.0 million to EUR 87.9 million. The share of group sales emanating from the non-automotive market area fell from 10.2% in the first half of 2017 to 9.6% in the current year, due primarily to a sizeable reduction in call-ups from one major customer.

In the first half of 2018, POLYTEC GROUP EBITDA totalled EUR 35.3 million. The EBITDA margin fell by 2.2 percentage points over the previous year to stand at 10.7%, amongst others due to the marked rise in raw material prices. In the same period, six-month group EBIT amounted to EUR 23.0 million (H1 2017: EUR 31.3 million). The EBIT margin declined from 9.0% to 7.0%.

Owing to lower financial earnings, the financial result fell to minus EUR 1.5 million (H1 2017: minus EUR 1.3 million). Due to a reduced tax ratio, which amounted to 22.7% and was 1.9 percentage points lower than in the previous year, the group earnings after tax totalled EUR 16.6 million (H1 2017: EUR 22.6 million). This corresponds with earnings per share of EUR 0.74 (H1 2017: EUR 1.01).

At the end of the first half of 2018, group's balance sheet total remained at the level of 31 December 2017. In spite of a dividend payment at the end of May 2018 of around EUR 9.9 million (2017: EUR 8.8 million), the equity ratio rose by 1.4 percentage points to 43.5%. At EUR 89.8 million, net debt was EUR 11.1 million higher than on the 31 December 2017 balance sheet date, due largely to the dividend payment.

Outlook
The POLYTEC GROUP executive management assumes group sales of around EUR 650 million and EBIT (earnings before interest and taxes) of around EUR 45 million for the financial year 2018, subject to further, yet unknown negative effects due to the topics of WLTP, diesel drive technology and any other difficulties in international trade.

The interim half-year report of POLYTEC Holding AG for the reporting date 30 June 2018 is available on the company's website section Investor Relations, Publications, Financial Reports.
http://www.polytec-group.com/en/Investor-Relations/Publications/Financial-Reports

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Emitter:	POLYTEC HOLDING AG Polytec-Straße 1 4063 Hörsching Austria
Contact Person:	Mag. Paul Rettenbacher
Phone:	+43 7221 701 292
E-Mail:	paul.rettenbacher@polytec-group.com
Website:	www.polytec-group.com
ISIN(s):	AT0000A00XX9 (Share)
Stock Exchange(s):	Vienna Stock Exchange (Official Trade)